Welsh games outfit OysterWorld has fallen into administration.
As reported by the BBC, 50 people have lost their jobs. The firm has received 1.4m in Welsh Government grants over the last two years. The developer owes 2m, say administrators Kreston Reeves.
The firm decided to enter administration after major creditors ‘pulled the plug'.
OysterWorld is known for creating casual and licensed games, and has produced products for BBC Worldwide. MCV understands it was working on a BBC project at the time of falling into administration. It has also made games for LucasArts and Ubisoft.
A Welsh Government spokesman told the BBC: "We were sorry to learn that OysterWorld Games are being placed into administration. We can confirm the company received a Welsh Government grant under the condition of creating 60 jobs in Wales and that this target was met and exceeded.
"We are now working closely with representatives of the company to support displaced staff.
"The gaming sector in Wales is growing and we anticipate that the skills and experience gained by the staff of OysterWorld Games will be attractive to other digital companies either based in, or looking to set up in Wales.
"We would stress that latest figures show the survival rates of the companies we support are actually above the UK average."